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Indirect taxes are expected to increase in 2015 by 6.9 due to higher excise tax and import
duties. The increase in revenue from these taxes is a result of the rising purchasing power of
the population, imports of materials for large infrastructure projects and greater
compliance. These
rises counteract expected a slight reduction in service and sales tax for 2015 compared
to the 2014 budget figure. Collections of both these taxes are expected to be higher
than the actual collection in 2013. This upward trend is expected to continue in the future.
However the collection of these taxes ought to also continue improving in the near future
with the strengthening of the private sector and the administration mechanisms around it.
Table 2.6.2.2.1: Total Tax Revenue 2013 – 2019 m
2013 Actual
2014 BB1
2015 Projection
2016 2017
2018 2019
Total Tax
104.8 120.0
125.5 134.4
143.5 152.6
161.9 Direct
Taxes 40.2
45.1 45.7
47.6 49.6
51.7 53.8
Income Tax
8.8 9.4
18.3 19.2
20.0 20.9
21.9
Individual Income
0.9 3.7
1.2 1.4
1.6 1.7
1.9 Individual
Inc. Other 7.9
5.7 17.1
17.8 18.5
19.2 20.0
Corporate Tax
8.9 13.5
7.8 8.1
8.5 8.8
9.2 Withholding
Tax 22.5
22.2 19.5
20.3 21.1
21.9 22.8
Indirect Taxes
64.4 74.6
79.7 86.6
93.7 100.7
107.9
Service Tax
3.5 4.1
3.6 3.7
3.9 4.0
4.2 Sales
Tax 14.0
17.8 15.8
16.4 17.1
17.8 18.5
Excise Tax
34.3 37.3
44.4 49.9
55.5 61.0
66.6 Import
Duties 12.5
15.3 15.9
16.6 17.2
17.9 18.6
Other Tax Revenue
0.2 0.3
0.2 0.2
0.2 0.2
0.2
Source: National Directorate of Economic Policy
2.6.2.3: Fees Charges
Fees charges include a wide selection of categories which contribute to domestic revenue
from non‐tax sources. These comprise administrative fees, utility payments and
endowments to the Government from natural resources other than petroleum. As shown in
Table 2.6.2.3.1, most of the categories represent small amounts, which are rounded to zero
in some cases.
12
The list is also often updated with new categories, reflecting regular changes
to the revenue collection system in Timor‐Leste, which are the result of improvements
in administrative efficiency and new delineation of responsibilities across line ministries.
Table 2.6.2.3.1 shows the projections.
12
Categories presenting no revenues in Table 2.5.2.3.1 correspond to income collection of less than 0.5 million
and are thus rounded to 0.0.
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Table 2.6.2.3.1: Fees Charges Projections 2013 – 2019 m
2013 Actual
2014 BB1
2015 Projection
2016 2017
2018 2019
Total Fees Charges
24.1 41.2
37.2 39.6
42.0 44.4
46.9
Business Registration Fees
0.8 1.5
0.3 0.4
0.4 0.4
0.4 Postage
Fees 0.1
0.0 0.0
0.0 0.0
0.0 0.0
Property Rentals
2.6 3.1
3.4 3.5
3.6 3.8
3.9 Water
Fees 0.1
0.0 0.2
0.2 0.2
0.2 0.2
National University Fees
0.5 0.6
0.6 0.7
0.7 0.7
0.7 Vehicle
Registration Fees 1.0
1.3 1.1
1.2 1.2
1.3 1.3
Vehicle Inspection Fees
0.4 0.4
0.5 0.5
0.5 0.6
0.6 Vehicle
Inspection Imported 0.1
0.0 0.1
0.1 0.1
0.1 0.1
Drivers Licence Fees
0.4 0.2
0.4 0.5
0.5 0.5
0.5 Franchising
Public Transport Fees 0.1
0.1 0.7
0.8 0.8
0.8 0.9
Transport Penalties
0.1 0.1
0.1 0.2
0.2 0.2
0.2 Other
Transport Fees 0.0
0.0 0.0
0.0 0.0
0.0 0.0
ID and Passport
0.9 0.9
0.9 1.0
1.0 1.1
1.1 Visa
Fees 2.6
1.2 2.7
2.8 3.0
3.1 3.2
Hospital and Medical Fees
0.1 0.1
0.1 0.1
0.1 0.1
0.1 Fines
‐ Health professionals 0.0
0.0 0.0
0.0 0.0
0.0 0.0
Court Fees
0.0 0.1
0.0 0.0
0.0 0.0
0.0 Dividends,
Profits, and Gains 0.6
4.5 1.0
1.1 1.1
1.2 1.2
Fines and Forfeits
0.1 0.0
0.1 0.1
0.1 0.1
0.1 Mining
and Quarrying 0.0
0.1 0.1
0.1 0.1
0.1 0.1
Radio and Television Fees
0.3 0.0
0.4 0.4
0.5 0.5
0.5 Bid
Document Receipts 0.0
0.1 0.2
0.2 0.2
0.2 0.2
Auctions 0.5
0.1 1.0
1.1 1.1
1.1 1.2
Embassy Fees
0.0 0.0
0.0 0.0
0.0 0.0
0.0 Productos
Florestais 0.0
0.0 0.1
0.1 0.1
0.1 0.1
Rental Government Property
0.1 0.1
0.2 0.2
0.2 0.2
0.2 EAIP
0.0 0.0
0.0 0.0
0.0 0.0
0.0 Investment
Registration Fee 0.0
0.0 0.0
0.0 0.0
0.0 0.0
Sanitation Service Fees 0.0
0.0 0.0
0.0 0.0
0.0 0.0
Social Game Receipts 0.3
0.2 1.0
1.0 1.0
1.1 1.1
Rice Sales 4.2
6.4 1.7
1.8 1.9
2.0 2.0
Sales of Local ProduceBamboo C 0.0
0.0 0.1
0.1 0.1
0.1 0.1
Sales of Local Products. 0.1
0.1 0.0
0.0 0.0
0.0 0.0
Electricity Revenues 0.0
19.0 18.8
20.5 22.1
23.7 25.4
Other Non‐Tax Revenues 7.9
0.5 1.0
1.0 1.1
1.1 1.2
Source: National Directorate of Economic Policy
Total fees charges are expected to decrease by 9.7 in 2015 in comparison to the 2014
budget figure. This is mostly explained by the fall of expected revenues from rice sales,
business registration fees and dividends, profits and gains.
Lower rice sales reflect both a smaller rice import program as well as a lower Government
intervention in the rice market. Lower Government intervention is in itself the result of a
stabilisation of rice prices and greater supply of rice in 2014 compared to previous years
which is predicted to continue for 2015.
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The reduction in business registration fees for 2015 stems from changes in the
administration process brought about by the One Stop Shop SERVE. The lower dividends,
profits and gains are the result of smaller profits from the telecom provider Timor Telecom
since the liberalisation of the telecommunications market.
Despite an overall reduction in fees charges, many of its categories are expected to
increase for 2015. Most notably these include water fees, productos florestais, visa fees,
franchising public transport, RTTL fees and social games and receipts. All relevant line
ministries for these categories attributed the improvements to either better monitoring,
new technology, administration or improved legislation. The increase in social games
receipts stems from the increasing number of games and lotteries available in Timor‐Leste.
2.6.2.4: Interest
Interest reflects interest payments received from cash held in the CFTL, HCDF and IF see
table 2.6.2.1.1. It is expected to slightly decrease in 2015 due to smaller cash reserves in
these accounts. These smaller cash reserves are due to the Government’s policy of running
down cash balances before withdrawing money from the PF. This policy maximises
investment returns as the yield on PF assets is higher than the interest rate on cash held in
the Government’s accounts.
2.6.2.5: Autonomous Agencies
Table 2.6.2.5.1 lays out the revenue forecasts for the four autonomous agencies which are
currently operating in Timor‐Leste previously there were five, but EDTL was incorporated
into the Ministry of Public Works in 2014.
Table 2.6.2.5.1: Autonomous Agencies’ Revenues 2013 – 2019 m
2013 Actual
2014 BB1
2015 Projection
2016 2017
2018 2019
Total Autonomous Agencies
22.2 4.8
